Bay Park Center for Nursing & Rehabilitation LLC v. Philipson

CourtDistrict Court, E.D. New York
DecidedMarch 7, 2023
Docket2:20-cv-06291
StatusUnknown

This text of Bay Park Center for Nursing & Rehabilitation LLC v. Philipson (Bay Park Center for Nursing & Rehabilitation LLC v. Philipson) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bay Park Center for Nursing & Rehabilitation LLC v. Philipson, (E.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ----------------------------------------------------------------X BAY PARK CENTER FOR NURSING & REHABILITATION LLC et al.,

Plaintiffs, ORDER 2:20-CV-6291-NGG-SJB -against- 21-CV-1999-NGG-SJB 21-CV-2006-NGG-SJB 2:21-CV-2009-NGG-SJB BEN PHILIPSON, et al., 2:21-CV-2021-NGG-SJB 2:21-CV-2025-NGG-SJB Defendants. 2:21-CV-2030-NGG-SJB 21-CV-2031-NGG-SJB 21-CV-2034-NGG-SJB 21-CV-2035-NGG-SJB 21-CV-2045-NGG-SJB

----------------------------------------------------------------X BULSARA, United States Magistrate Judge:

The Allstate Defendants1 (the “Fee Applicants”) have filed a motion seeking an award of attorney’s fees. (Mot. for Att’y Fees dated July 6, 2022 (“Mot. for Att’y Fees”), Dkt. No. 65). For the reasons stated below, the motion is granted in part. FACTUAL BACKGROUND AND PROCEDURAL HISTORY The Court assumes familiarity with the facts of this action as set forth in Judge Garaufis’s May 27, 2021 Order (the “May 27 Order”) granting motions to remand related lawsuits filed in New York State Supreme Court and dismissing 11 other lawsuits

1 The Allstate Defendants are: Benjamin Landa, The Landa Group, Patrick Formato, Yechiel Landa, Sam Schlesinger, The Schlesinger Family Trust, Allstate ASO, Inc., Allstate Administrators, Inc., Parkview Care and Rehabilitation Center, Inc, Bayview Manor LLC, Nassau Operating Co., LLC, Pinegrove Manor II, LLC,-Grace Plaza, Woodmere Rehabilitation & Health Care Center., Inc., Brookhaven Rehabilitation & Health Care Center, Little Neck Care Center, LLC, New Surfside Nursing Home, LLC- Caring Family Nursing & Rehabilitation, Golden Gate Rehab. & Health Care Ctr. LLC, Willoughby Rehab. & Health Care Ctr., LLC, and Shorefront Operating, LLC. (Notice of Mot. dated July 6, 2022, Dkt. No. 65 at 2 n.1). commenced in federal court. Percy v. Oriska Gen. Contracting, No. 20-CV-6131, 2021 WL 2184895, at *1 (E.D.N.Y. May 27, 2021), appeal withdrawn sub nom. Broad Coverage Serv., Inc. v. Oriska Ins. Co., No. 21-295, 2021 WL 4399676, at *1 (2d Cir. Sept. 1, 2021), and aff’d sub nom. Hall v. Oriska Corp. Gen. Contracting, No. 21-1564, 2022 WL 17420307, at *3 (2d Cir. Dec. 6, 2022). The actions were “shareholder

derivative suits seeking reimbursement of unpaid insurance premiums.” Id. Eleven of these cases are now the subject of the present motion for attorney’s fees. The first of these cases, Bay Park Center for Nursing & Rehabilitation LLC v. Philipson (the “Bay Park Action”), was removed to this Court on December 29, 2020 by Defendants Donna Hodge, Annette Hall, Karen Grant Williams, and Alexi Arias as the Class Representatives (collectively, the “Class Defendants”). (See Notice of Removal filed Dec. 29, 2020, Dkt. 2:20-CV-6291, Dkt. No. 1 at 4; Mem. of Law in Supp. of Allstate Defs.’ Mot. (“Mem.”), attached as Ex. 1 to Mot. for Att’y Fees, at 2). The other ten actions were initially removed on January 27, 2021 by the Class Defendants under the caption Oriska Corp. v. North Sea Associates, LLC, Dkt. 2:21-CV- 454. (Mem. at 3). Judge Garaufis closed that case on April 9, 2021 after finding that the

Class Defendants “attempted to aggregate numerous removal applications under one index number” and removal was, therefore, “improperly made.” (Order dated Apr. 9, 2021, Dkt. 2:21-CV-454). In April 2021, the Class Defendants removed the 10 cases as individual matters.2 (Mem. at 3). In response, the Fee Applicants prepared motions to

2 See Notice of Removal dated Apr. 14, 2021, Dkt. 21-CV-1999, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 21-CV-2006, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 2:21-CV-2009, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 2:21-CV-2021, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 2:21-CV- 2025, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 2:21-CV-2030, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 21-CV-2031, Dkt. No. 1; Notice of Removal remand, and filed other letters, briefing schedules, and pre-motion letters to remand in several actions. (Id.). Each of these cases was ultimately assigned to Judge Garaufis, who granted the motions to remand, stating that the “attempts on behalf of the Class Representatives to remove these actions were objectively unreasonable” and that the “remanding parties

[were] entitled to reasonable attorneys’ fees and costs.” Percy, 2021 WL 2184895, at *10. “If the parties [could not] agree on the amount to be reimbursed,” the remanding parties were directed to “submit a bill of costs and a fee application to this court.” Id. On July 12, 2021, the Fee Applicants filed an Affirmation of Services Rendered. (See Dkt. No. 59). In response, the Court directed the Fee Applicants to submit a single, consolidated motion for attorney’s fees in compliance with Local Civil Rule 7.1, while making reference to each of the cases for which fees were sought. (Order dated Jan. 27, 2022). The Court noted that any motion should also comply with the Order to Show Cause issued in related case, Dkt. 2:21-CV-2010, by including, for example, attorney biographies and justifications for rates requested. (Id.). The Fee Applicants filed a motion for attorney’s fees in several of the relevant

cases. (Mot. for Att’y Fees dated Feb. 10, 2022, Dkt. No. 62). This Court denied the motion without prejudice, identifying several deficiencies in the motion, including a failure to allocate tasks to specific actions or docket numbers and the practice of block- billing in time records. (Order dated June 6, 2022, Dkt. No. 64 at 6–8). The Court granted leave to make a renewed application, and the present motion was timely filed on

dated Apr. 14, 2021, Dkt. 21-CV-2034, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 21-CV-2035, Dkt. No. 1; Notice of Removal dated Apr. 14, 2021, Dkt. 21-CV- 2045, Dkt. No. 1. July 6, 2022. (Id. at 8; Mot. for Att’y Fees). No opposition to the renewed motion was filed. On July 22, 2022, the Court separately awarded $36,557.50 in fees to Ira Lipsius and the “Healthcare Defendants”—various healthcare and rehabilitation employer defendants who filed motions to remand in several related lawsuits—for work performed by Lipsius-BenHaim Law, LLP. Oriska Corp. v. Garden Care Ctr., Inc., No.

2:20-CV-6291, 2022 WL 2834940, at *5 (E.D.N.Y. July 20, 2022) (adopting report and recommendation). DISCUSSION “Our basic point of reference when considering the award of attorney’s fees is the bedrock principle known as the American Rule[.]” Zurich Am. Ins. Co. v. Team Tankers A.S., 811 F.3d 584, 590 (2d Cir. 2016). Under the American Rule, “[e]ach litigant pays his own attorney’s fees, win or lose, unless a statute or contract provides otherwise.” Hardt v. Reliance Standard Life Ins. Co., 560 U.S. 242, 253 (2010). Only if a statute contains “specific and explicit provisions for the allowance of attorneys’ fees,” may a court award them. Baker Botts L.L.P. v. ASARCO LLC, 576 U.S. 121, 126 (2015) (quotations omitted).

As noted above, Judge Garaufis already concluded that the Fee Applicants are entitled to attorney’s fees in light of the lack of an “objectively reasonable basis for seeking removal.” Percy, 2021 WL 2184895, at *9–*10 (quoting Martin v. Franklin Cap. Corp., 546 U.S. 132, 141 (2005)). Therefore, the only question before this Court is the reasonableness of the award sought by the Fee Applicants. I. Hourly Rates The “starting point” for determining the amount of attorney’s fees to be paid by Defendants is calculation of the “lodestar,” which is “the product of a reasonable hourly rate and the reasonable number of hours required by the case.” Millea v. Metro-N. R.R.

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Bay Park Center for Nursing & Rehabilitation LLC v. Philipson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bay-park-center-for-nursing-rehabilitation-llc-v-philipson-nyed-2023.